AI and chip stocks have been among the winners this year, despite a crash in April following President Donald Trump's "Liberation Day" tariffs announcement. And Micron (MU +9.01%) has been one of the top performers in the sector.
The memory chipmaker has continued to deliver strong growth, especially in artificial intelligence (AI) and the data center. It has also benefited from a return in overall bullishness among investors as the stock rose 46% through the first six months of 2025, according to data from S&P Global Market Intelligence.
As you can see from the chart below, the stock overcame a sharp drop in April to come roaring back in May and June.
Micron bounces back
Micron is one of the more cyclically sensitive chip stocks, as the memory category is known for its price swings and inventory gluts, according to the economic cycle and sector-level metrics. For that reason, it trades at a substantial discount to most of the semiconductor sector, despite solid growth. Currently, it's valued at a trailing price-to-earnings (P/E) ratio of 22 and a forward P/E of just 10.
Micron stock jumped in May and June as enthusiasm for the AI trade returned, with concerns about the trade war cooling. Nvidia, which is now Micron's biggest customer, has since returned to all-time highs, nearly doubling off its low in April, and Micron delivered a strong round of results.
Micron's revenue rose 37% year over year to $9.3 billion, and adjusted earnings per share soared from $0.62 to $1.91 as its margins also significantly improved.
The company posted particularly strong results in the data center segment, which now makes up more than half of its revenue. Data center revenue more than doubled from the quarter a year ago, and high-bandwidth memory (HBM) revenue grew nearly 50% sequentially.
Micron stock was mostly unchanged on the news, as expectations for the strong growth seemed to be baked into the previous surge.
Image source: Getty Images.
What's next for Micron
After the surge through May and June, the stock has traded flat over the last couple of weeks. While Micron's growth will rely on continued demand for AI-related components, the company also benefits from being the only U.S. manufacturer of memory chips at a time when the federal government is pushing for the reshoring of such industries, making it strategically valuable. Micron was also awarded $6.6 billion as part of the CHIPS Act.
Given its attractive valuation, there should be more upside for Micron stock, even with its cyclical history.
